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National University of Modern Languages
Department of Management Sciences
Lahore Campus
INTERNSHIP REPORT ON
LAHORE ELECTRIC SUPPLY COMPANY (LESCO)
SUBMITTED BY
MUHAMMAD TALHA
LC-2987
Bachelors of Business Administration
February 2013 to January 2017
I
INTERNSHIP REPORT ON
(LAHORE ELECTRIC SUPPLY COMPANY)
Submitted in partial fulfillment of the requirements
For the degree of Bachelors in Business Administration
at
National University of Modern Languages
Lahore
January 2017
II
National University of Modern Languages, Lahore
Faculty of Management Sciences
It is hereby certified that the report has been thoroughly and carefully read and recommend to the
Faculty of Management Sciences for acceptance of Final Internship Report by Muhammad Talha.
Roll No Lc-2978. Session (February 2013 to January 2017) Morning, in partial fulfillment of the
requirement for the degree of Bachelor in Business Administration of National University of
Modern Languages Lahore.
Date: 14 November, 2016
Supervisor Name ___________________________
Supervisor Signature_________________________
Panel Member Name ________________________
Panel Member Signature______________________
Head of the Department______________________
III
ACKNOWLEDGMENT
I am thankful to ALLAH Almighty, the most Beneficent and the Merciful, who is the Master of
the Day of Judgment. ALLAH is only entire source of information, wisdom and knowledge. No
word can express the greatness of ALLAH.
I am thankful to Mr. Jehanzaib Akram for his valuable guidance, scholarly criticism, untiring help,
compassionate attitude and enlightened supervision during the making of this report. I would also
like to acknowledge LESCO team who helps me out in understanding the environment, their
Company, and give me Opportunity to complete my Internship Report. At Last I express Sincere
& Extreme thanks to my Parents, Because of their Prayers and effort I am able to Complete my
Education.
IV
LETTER OF TRANSMITTAL
Head of Management Sciences Department,
National University of Modern Languages,
Lahore Campus,
Respected Sir,
It is to present you the internship report which was executed at LAHORE ELECTRIC SUPPLY
COMPANY as required by the university for the degree requirement of BBA(Hons) program.
This report has been prepared in accordance with the guideline issued by the department. This
report has practical application of whatever I have studied in Bachelor of Business
Administration at National University of Modern Languages. In this report, I have covered:
introduction of LESCO, detail of my working and learning in the LESCO, impact of internship
on career in the future. During my internship days I worked on different assignments given to
me. I feel this experience would be of great help in the future.
I have put all my effort to summarize my knowledge and experience in this report, to make it
comprehensive and to meet reader’s expectations.
Yours Sincerely,
Muhammad Talha
V
Contents CHAPTER 1 .....................................................................................................................................1
Introduction:...................................................................................................................................2
Power Wing: ..................................................................................................................................3
PEPCO: .........................................................................................................................................4
Vision ........................................................................................................................................5
Mission ......................................................................................................................................5
Objectives ..................................................................................................................................5
PECPO Board of Directors........................................................................................................6
Operation Circle of LESCO: ............................................................................................................8
Vision and Mission Statement of LESCO .........................................................................................8
Vision ........................................................................................................................................9
Goals .........................................................................................................................................9
Achievements and Future Plans of LESCO .......................................................................................9
Achievements of LESCO: ..........................................................................................................9
Future Plans OF LESCO......................................................................................................... 10
Top management Profile: .............................................................................................................. 11
CHAPTER 2 ................................................................................................................................... 12
Nature of the Organization: ........................................................................................................... 13
Product Lines: .............................................................................................................................. 13
Major Competitors in the product line: ........................................................................................... 13
Faisalabad Electric Supply Co. ................................................................................................ 13
Gujranwala Electric Power Co. ............................................................................................... 14
Hyderabad Electric Supply Co. ............................................................................................... 14
Islamabad Electric Supply Co. ................................................................................................ 14
Peshawar Electric Supply Co................................................................................................... 15
Quetta Electric Supply Co. ...................................................................................................... 15
Multan Electric Power Co. ...................................................................................................... 15
Karachi Electric Supply Company Ltd.................................................................................... 15
CHAPTER 3 ................................................................................................................................... 17
Organizational structure: ............................................................................................................... 18
Directorates of LESCO ................................................................................................................. 19
1. MIS Directorate ........................................................................................................................ 19
2. Customer service Directorate ..................................................................................................... 19
3. Finance Directorate ................................................................................................................... 19
VI
4. Operation Directorate ................................................................................................................ 19
5. HR and Admin Directorate......................................................................................................... 19
6. Technical Directorate ................................................................................................................ 19
1. Management Information System (MIS) Directorate ....................................................... 19
Line Losses Reports ...................................................................................................................... 31
General Reports ............................................................................................................................ 31
2. Customer Services Directorate ......................................................................................... 33
3. Finance Directorate.......................................................................................................... 34
4. Operation Directorate ...................................................................................................... 36
5. HR & Admin Directorate ................................................................................................. 38
6. Technical Directorate ....................................................................................................... 43
CHAPTER 4 ................................................................................................................................... 46
SWOT Analysis............................................................................................................................ 47
Strength................................................................................................................................... 47
Weaknesses.............................................................................................................................. 47
Opportunities .......................................................................................................................... 47
Threats .................................................................................................................................... 48
CHAPTER 5 ................................................................................................................................... 49
Need for Financial Analysis ........................................................................................................... 50
Tools of Financial Statement Analysis ............................................................................................ 51
What type of information ratio analysis? ........................................................................................ 52
Caution about using Ratio Analysis ................................................................................................ 52
Significance of financial analysis ................................................................................................... 52
Consolidated Statement of Financial Position ................................................................................. 53
Consolidated Income statement...................................................................................................... 56
Financial ratio analysis: ................................................................................................................. 58
1. Current ratio: .................................................................................................................. 58
2. Total Sales turnover:........................................................................................................ 58
3. Total asset turnover ......................................................................................................... 59
4. Earnings per share ........................................................................................................... 59
5. Working Capital .............................................................................................................. 60
6. Debt ratio:........................................................................................................................ 60
CHAPTER 6 ................................................................................................................................... 61
Work done: .................................................................................................................................. 62
Banking section of LESCO:........................................................................................................... 62
VII
First week: ............................................................................................................................... 62
Second week: ........................................................................................................................... 63
Third week: ............................................................................................................................. 63
Fourth week: ........................................................................................................................... 64
CHAPTER 7 ................................................................................................................................... 66
PROBLEMS................................................................................................................................. 67
OBSERVATION .......................................................................................................................... 67
SUGGESTIONS/ RECOMMENDATIONS.................................................................................... 68
1
CHAPTER 1
INTRODUCTION
2
Introduction:
WAPDA, the Pakistan Water and Power
Development Authority, was created in 1958 as a
Semi-Autonomous Body for the purpose of
coordinating and giving a unified direction to the
development of schemes in Water and Power
Sectors, which were previously being dealt with, by
the respective Electricity and Irrigation Department
of the Provinces.
Since October 2007, WAPDA has been bifurcated into two distinct entities i.e. WAPDA and
Pakistan Electric Power Company (PEPCO). WAPDA is responsible for water and hydropower
development whereas PEPCO is vested with the responsibility of thermal power generation,
transmission, distribution and billing. There is an independent Chairman and MD (PEPCO)
www.pepco.gov.pk replacing Chairman WAPDA and Member (Power) who were previously
holding the additional charges of these posts.
The Charter of Duties of WAPDA is to investigate, plan and execute schemes for the following
fields:
a. Generation, Transmission and Distribution of Power.
b. Irrigation, Water Supply and Drainage.
c. Prevention of Water logging and Reclamation of Waterlogged and Saline Lands.
d. Flood Management.
e. Inland Navigation.
The Authority comprises of a Chairman and three (3) Members working through a Secretary.
WAPDA is one of the largest employers of human resources in Pakistan. Over the years WAPDA
has built-up a reservoir of Technical know-how and expertise which has made it a modern and
progressive organization.
3
Power Wing:
Power Wing is currently headed by Member (Power). Power wing of WAPDA comprising of
Generation, Transmission and Distribution has been restructured into fourteen (14) public limited
companies. These fourteen (14) Corporate Entities are;
Four (4) Thermal Power Generation Companies (GENCOs)
1. Southern Generation Power Company Limited (GENCO-1) headquarter at Jamshoro district
Dadu near Hyderabad Sindh.
2. Central Power Generation Company Limited (GENCO-2) headquarter at Guddu district
Jacobabad Sindh.
3. Northern Power Generation Company Limited (GENCO-3) headquarters at TPS Muzaffargarh
district Muzaffargarh Punjab.
4. Lakhra Power Generation Company Limited (GENCO-4) Headquarter at WAPDA House
Lahore.
One (1) National Transmission & Power Dispatch Company (NTDC)
Nine (9) Distribution Companies (DISCOs) as under:
1] (LESCO) - Lahore Electric Supply Company
2] (GEPCO) - Gujranwala Electric Power Company
3] (FESCO) - Faisalabad Electric Supply Company
4] (IESCO) - Islamabad Electric Supply Company
5] (MEPCO) - Multan Electric Power Company
6] (PESCO) - Peshawar Electric Power Company
7] (HESCO)- Hyderabad Electric Supply Company
8] (QESCO) - Quetta Electric Supply Company
9] (TESCO) - Tribal Electric Supply Company
4
PEPCO:
PAKISTAN ELECTRIC POWER COMPANY
The Pakistan Electric Power Company (Private) Limited (PEPCO) has been entrusted the task of
managing the transition of WAPDA from a bureaucratic structure to a corporate, commercia l ly
viable and productive entity. It is a mammoth task and progress in the initial months was rather
slow, but one should keep in mind that responsibility is enormous and transition is a long drawn
process.
Before going into further details of the restructuring program, it is necessary to understand
the shift in the GoP policy. The GoP, in line with its Strategic Plan of 1992 approved by
the cabinet committee, had decided to restructure the entire power sector in the country
De-regulation of power sector
Promotion of IPPs
Restructuring of WAPDA
Privatization of select corporate entities
5
Vision
To make Pakistan Power Sector customer friendly, efficient, able and responsive in meeting tee
electric energy requirements of industry, business and domestic customers, and move to an energy
sufficient model from the current energy deficient scenario, on commercially viable and
sustainable basis, in order to support the high growth economy and to meet the governme nt's
objective of "Power for All".
Mission
To fully enable the reform and restructuring of the Pakistan Power Sector and to transform the
fourteen (14) Corporate entities (CE's) into autonomous and commercially viable enterprises, thru
induction of effective corporate management, best business and utility practices, and well-
engineered systems, and bridge the ever growing supply-demand gap, so as to meet customers
electric energy requirement on a sustainable and environmentally friendly basis, thru best
utilization of resources, in an efficient, ethical and customer friendly manner, with responsibility
to the community and the Nation.
Objectives
Pakistan Electric Power Company (PEPCO) unveiled new face of Pakistan's power sector with the
crisis management objectives to improve the efficiency of the power sector and to meet customers'
electric energy requirements on a sustainable and environment friendly basis. The specific
objectives of PEPCO are:
o Stop load shedding,
o Constructing new grid stations,
o Reducing line losses; minimizing tripping and theft control,
o Revamping of generation units and to improve customer services and
o Development of an integrated automated power planning system for generation,
transmission and distribution to ensure system stability, fault isolation and upgrade
relying, metering and tripping system at NTDC as well as Discos level.
6
PECPO Board of Directors
Mr. Shahid Rafi
Secretary Ministry of Water and Power
Chairman
Mr. Tahir Basharat Cheema
Managing Director, PEPCO
Member
Mr. Saleem Arif
Advisor, PEPCO
Member
Razi Abbas
Chief Financial Officer, PEPCO
Member
Mr. Wazir Ali Bhaio
General Manager (Operation)
Member
The environment and structure of the power industry throughout the world are undergoing
dramatic change. The power sector is moving from monopoly to privatization and from
integration to disintegration. To keep pace with this change, the Government of Pakistan
approved a Strategic Plan in 1994 as a consequence of which the power wing of WAPDA has
been unbundled into 12 Companies for generation, transmission and distribution of electricity. In
December 1998, the WAPDA Act was amended, which allowed the creation of Pakistan Electric
Power Company (PEPCO), and unbundling of WAPDA’s Power Wing into:
Eight distribution companies (formed from existing area boards);
Three generating companies (comprising 11 of WAPDA’s generating plants) and
National Transmission and Dispatch Company (NTDC).
Various Regions of WAPDA were performing the local areas electricity distribution service.
Then the Area Electricity Board (AEB) Lahore, on the eight AEBs in Pakistan, was established
under the scheme of Area Electricity Boards in 1982, in order to provide more autonomy and
7
representation to provincial government, elected representatives, industrialists, agriculturalists
and other interest groups in functions of the AEBs. Lahore Area Electricity Board was
reorganized into one such corporatized entity under the name of Lahore Electric Supply
Company (LESCO.) with effect from 22-03-1998, with the aim of commercialization and
eventually privatization.
The restructuring program of WAPDA's Power Wing is based on the new strategic policies of
the GOP and endorsed and supported by the donor institutions. The aim of this transition is to
install corporate and business culture through:
Adopting of good business practices
Enhancing productivity and efficiency
Including customer orientation and service culture
Improving quality of services setting performance targets
Reducing costs
Theft and wastage.
This will be based on extensive use of information technology, management information
systems, and monitoring and prudent decision-making. It has been decided that some of the
functions currently being performed by WAPDA are of national importance and will therefore
continue to remain with WAPDA/GoP in the largest interest of the country. PEPCO has been
fully empowered and is responsible for the management of all the affairs of corporatized nine
Distribution Companies (DISCOs), four Generation Companies (GENCOs) and a National
Transmission Dispatch Company (NTDC). These companies are working under independent
Board of Directors (Chairman and some Directors are from Private Sectors). All Entities have
the physical possessions of all their operational assets. On 24th Feb. 2007 Ministry of Water &
Power notified NEPRA approved Tariff for all Distribution Companies replacing unified
WAPDA Tariff. Legal Agreements such as Business Transfer Agreements, Operation
Development Agreement, Energy Supply Agreement, Business Supplementary Agreement and
Fuel Supply Agreement etc. are executed between Lahore Electric Supply Co. and Corporate
Entities to facilitate commercial operations. Regulatory instruments like Grid Code, Distribution
Codes, and Performance Standard for Distribution Companies and Transmission Companies
were drafted and got approved from NEPRA in 2007.
8
Operation Circle of LESCO:
LESCO’s area of responsibility covers Civil Districts of Lahore, Kasur, Okara and Sheikhupura.
Lahore Electric Supply Co. comprises of the following seven distribution Operation Circles, one
Construction and one GSO Circle, as detailed below:
1. North Lahore Circle 5 Divisions / 29 Sub Divisions
2. Central Lahore Circle 5 Divisions / 31 Sub Divisions
3. Eastern Lahore Circle 4 Divisions / 23 Sub Divisions
4. Okara Circle 4 Divisions / 23 Sub Divisions
5. South-Eastern LHR Circle 4 Divisions /26 Sub Divisions
6. Sheikhupura Circle 5 Divisions / 30 Sub Divisions
7. Kasur Circle 5 Divisions / 30 Sub Divisions
Project Construction Circle 4 Divisions
G.S.O (Grid System
Operation Circle) 3 Divisions
Vision and Mission Statement of LESCO
As the leading electricity distribution company, strive to provide un-interrupted electric supply
and quality service to all customers at the minimum possible cost.
9
Vision
Achieve and maintain the highest degree of efficiency, reliability and responsiveness as a public
service organization for variety of customers.
Public and company workers’ safety shall be high on our priority.
Retaining and growing our business, staff and customer base will be of primary importance.
Developing innovative business relationships both inside and outside our local distribution area
will be key to our success.
Goals
Smooth and consistent flow/supply of electricity.
Prompt restoration of disrupted electricity supply.
Accurate and timely meter reading and billing.
Provision of electricity connection in minimum time.
Open door policy to facilitate our customers.
Special concessions for quick and timely payment of bill.
Availability of stores to deal with emergencies.
Feedback through Customer Services Centers.
Create awareness amongst employees for adopting safety measures while working on lines.
Energy saving message dissemination.
Creating positive image of LESCO.
Take steps for welfare of company employees.
Morale building and to create sense of belonging amongst company employees.
Achievements and Future Plans of LESCO
Achievements of LESCO:
One Window service facility at each Sub-Division
Establishment of LESCO Call Center
Establishment of Enterprise Resource Planning (ERP) System
Establishment of Computerized Customer Service Centers in each Circle
Establishment of Mobile Customer Service to facilitate installments and corrections of the bills
Central Chief Executive Customer Service Center
10
Restructuring of Circles, Divisions and Sub Divisions
Positioning of Field offices near geographic center of their jurisdiction and co-location of XEN
& RO offices
Printing of 12 months billing detail on bill
Well defined and uniform policy for detection bills
Enhanced allocation for Development and Maintenance
More branches of scheduled banks and post offices authorized to collect bills
Establishment of Model Sub-Divisions
Restructuring of Stores to ensure prompt availability
Establishment of Marketing Cell and Task Force at LESCO HQ to facilitate
industrial/commercial consumers
Frequent Open Forums for employees for redressal of their problems
Weekly Open Kutcheries by Field Officers
Provision of internet facility to all offices of LESCO
Future Plans OF LESCO
Achievement of corporatization and commercialization goals as per plan
Establishment of mobile customer services center at each circle
Distribution system rehabilitation under System Augmentation Program (SAP) for
reduction in energy losses
Timely execution of development works and LT/HT Proposals under SAP
New Grid Stations and augmentation/extension of existing Grid Stations and
Transmission Lines
Establishment of Computer Billing Center at Okara
Construction of various facilities including LESCO HQ building
Conversion of petrol vehicles to CNG
Purchase of new vehicles for field formation
11
Top management Profile:
Sr.No. Name Position Held Telephone
1 Wajid Ali Kazmi Chief Executive Officer 99204801
2 Muhammad Anwar Technical Director 99204807
3 Asghar Raza Operations Director 99204813
4 Muhammad Yousaf Legal Director 36280323
5 Muhammad Buksh Baloch Chief Financial Officer 99204816
6 Mirza Khalid Customer Services Director 99204814
7 Azia Shoaib HR Director 99204811
8 Tariq Wahid Khan DG Admin 99204696
9 Imtiaz Rasool Director General (IT) 36636815
12
CHAPTER 2
PRODUCTS AND SERVICES
13
Nature of the Organization:
In exercise of the powers conferred on the National Electric Power Regulatory Authority under
Section 21 of the Regulation of Generation, Transmission and Distribution of Electric Power Act
1997, the authority grants the license to the Lahore Electric Supply Co. for the Distribution
Services of Electric supply and make sale of Electric power to the consumers in the services
territory and concession territory subject to and in accordance with the terms and conditions of
the NEPRA. According to the license issued to the Lahore Electric Supply Co. the company have
to provide the electric supply to their Domestic, Bulk, Commercial and industrial consumers.
Product Lines:
Lahore Electric Supply Co. distributes the electric power/supply to
Domestic
Commercial
Industrial and Bulk consumers.
The company also provides the maintenance of Electrical Equipment’s.
Major Competitors in the product line:
Faisalabad Electric Supply Co. (FESCO)
Gujranwala Electric Power Co. (GEPCO)
Hyderabad Electric Supply Co. (HESCO)
Islamabad Electric Supply Co. (IESCO)
Peshawar Electric Supply Co. (PESCO)
Quetta Electric Supply Co. (QESCO)
Multan Electric Power Co.(MEPCO)
Karachi Electric Supply Company Ltd. (KESCO)
Faisalabad Electric Supply Co.
FESCO Distributes and supplies electricity to about 2.76 million customers within itsterritory
with a population over 26.5 million under a Distribution License granted by National Electric
14
Power Regulatory Authority (NEPRA) pursuant to the Regulation of Generation, Transmission
and Distribution of Electric Power Act, 1997 (NEPRA Act). Geographical service area of
FESCO comprises Faisalabad, Sargodha, Mianwali,Khushab, Jhang, Bhakker, T.T Singh and
Chiniot.
Gujranwala Electric Power Co.
Gujranwala Electric Power Company (GEPCO) has been setup over area of jurisdiction and
network of former Area Electricity Board, which was created in early eighties. It encompassed
the areas of existing Districts of Gujranwala, Hafizabad, Sialkot, Narowal, Gujrat and Mandi
Bahauddin. GEPCO was incorporated on 25th April 1998and obtained Certificate for
commencement of business on 5th June 1998. Management and Administration is entrusted to a
Board of Directors. We have about 2,356,305connections; Average monthly Collection for the
year 2008-09 is approximately 3.2 billion Rupees.
Hyderabad Electric Supply Co.
Area Electricity Board (AEB) Hyderabad was one of the eight AEB's constituted through
amendments in WAPDA Act during 1981. Later on Government of Pakistan approved
revamping of WAPDA power sector in April 1998, resultantly twelve corporate entities were
formed, Eight Distribution Companies (DISCOs), one National Transmission and Distribution
Company (NTDC) and three Generation Companies (GENCOs). Now one more GENCO has
been established. All these companies have been incorporated under Companies Ordinance 1984.
Islamabad Electric Supply Co.
IESCO aspires to become a major, diversified, transitional, integrated power supply company in
Pakistan, with a strong environment conscience, playing a national role in electricity supply and
distribution. At IESCO, we believe that time has come for us to set our sights beyond just being a
provider of conventional services. We expect to carry the spirit forward by training and leading a
crack team through the portal of Contact Center that will push the frontiers of our interactive
experience with our customers. Our Mission is to bring the assurance of energy to our customers,
with world-class quality and commitment for satisfaction as we continue in our quest for
excellence.
15
Peshawar Electric Supply Co.
Peshawar Electric Supply Company (PESCO), located in Peshawar provides service of power
distribution to over 2.0 million consumers of all civil districts of N.W.F.P, Pakistan. At PESCO
networks, we own and maintain N.W.F. P’s electricity distribution system via 132, 66, 33KV
sub-transmission lines, sub-stations and 11KV & 440V low tension lines with distribution
transformers that deliver electricity to your home or business.
Quetta Electric Supply Co.
QESCO is operating as a Power Distribution Company and will act as Private Organization on
switching over from Public to Private Sector. QESCO is dealing with Power Supply System in
the whole Balochistan less District Lasbela. It is smallest in terms of consumers but largest as it
covers 43 % area of Pakistan. The peak demand at the moment is 1177 MW evaluating measures
and anticipated to be 1659 MW by the year 2015 with 8 % uniform annual growth. QESCO
system is under stress due to huge number of Agri: Consumers contributing about 70-80 % of
Power Demand. Low voltage profile prevails due to long distances from Generating Sources,
besides availability of Single 220 KV sources from Guddu. The safe drawl of power is 721 MW.
To have additional source another 2x220 KV Dadu-Khuzdar & DG Khan-Loralai Transmission
Lines stands approved throughout source funding at the cost of Rs 5.437 and 5.089 billion
respectively. Hopefully, the work completion in totality is expected ending 2011.
Multan Electric Power Co.
MEPCO the Multan Electric Power Company is the biggest Distribution Company of WAPDA.
Its area of operation is from Sahiwal to Sadiqabad, Bahawalnager to Bahawalpur and Tounsa
Sharif to Rajanpur and bordering with Sind, Balochistan and NWFP. The Charter of MEPCO is
to provide the reliability, quality and safety of electric power supply to the consumers in its
Jurisdiction. MEPCO is envisaged for the creation of the resources and engineering plans for
additions, renovation and augmentation of the distribution system in order to achieve charter.
Karachi Electric Supply Company Ltd.
16
KESC is one of the city's largest employers: around 17,000 people currently work for the
company. It is also one of the oldest companies in Karachi and was established in the city even
before the creation of Pakistan in 1947. Incorporated on September 13, 1913, under the Indian
Companies Act of 1882, the company was nationalized in 1952 but was re- privatized on
November 29, 2005. KESC came under new management in September,2008; a significant
number of professional managers with experience in running utility and other large companies
have joined under this management and will be running it until the company is turned into a best
practice utility. At present, KESC is the only vertically integrated power utility in Pakistan and
manages the generation, transmission and distribution of electricity. KESC covers a vast area of
6,000 square kilometers and supplies electricity to all the industrial, commercial, agricultural and
residential areas that fall under its network. Karachi is the City of Lights. It is a metropolis of
over 20 million and is one of the most populous cities in the world. K-Electric Limited, formerly
known as Karachi Electric Supply Company Limited (KESC), is at present the only vertically-
integrated power utility in Pakistan that manages the generation, transmission and distribution of
electricity to the city. The Company covers a vast area of over 6,500 square kilometers and
supplies electricity to all the industrial, commercial, agricultural and residential areas that come
under its network, comprising over 2.2 million customers in Karachi and in the nearby towns of
Dhabeji and Gharo in Sindh and Hub, Uthal, Vindar and Bela in Balochistan.
K-Electric is also one of the city’s largest employers with nearly 11,000 people currently
working for it. It was established one hundred years ago on September 13, 1913 and is one of the
oldest companies operational in Karachi. It was set up under the Indian Companies Act of 1882
as the Karachi Electric Supply Corporation – KESC. The entity was nationalized in 1952 but re-
privatized on November 29, 2005. KESC came under new management in September, 2008 and
was renamed as the Karachi Electric Supply Company. At this point, it was transformed into a
profitable entity and is today a globally recognized example of an unprecedented turnaround.
Over the last few years, K-Electric has demonstrated a strong ability to bring about a sustainable
change. It has pursued a path of visible growth and transformation which has placed it amongst
the most dynamic institutions in Pakistan and in the region.
17
CHAPTER 3
DEPARTMENTS OF LESCO
18
Organizational structure:
19
Directorates of LESCO
The directorates of LESCO comprises of the following
1. MIS Directorate
2. Customer service Directorate
3. Finance Directorate
4. Operation Directorate
5. HR and Admin Directorate
6. Technical Directorate
1. Management Information System (MIS) Directorate
WAPDA played premier role in establishing computer centre in 1968. It was a time when
computer technology was bleak to majority government organizations. With the passage of time,
computer centre continued its expansion and presently 22-computer centers are in operation
throughout Pakistan. The major millstone set for computer centre was the computerization of
electricity billing which was met through in house development of billing software. Later on,
Management Information System, line losses system, payroll and store management system were
developed and implemented all over WAPDA. WAPDA Computer Center Lahore was attached
with LESCO with effect from January 2000 as a process of corporatization of distribution
companies. It has a sub-center at Sheikhupura providing services to Sheikhupura Circle.
Existing Responsibilities
LESCO Computer Centre is providing support for: -
A: Billing System
1. Data Preparation system.
2. Electricity billing of 2.1 million consume
3. Duplicate billing system at 10 customer service centers and all divisions
20
B: Payment Channels
1. Payment using Bank Alfalah Credit Card. LESCO, in collaboration with Bank Alfalah,
has started the service of bill payment through credit cards for the convenience of its
customers. The collection data is submitted by Bank Alfalah to LESCO servers on daily
basis.
2. Payment using Bank Al-falah Direct Debit facility.
3. Payment using NADRA KIOSK Machines. LESCO, together with NADRA, has also
started the service of bill collection at NADRA kiosks. The collection data is submitted
by NADRA to LESCO servers on daily basis.
4. Payment through more than 350 online bank Branches and Post offices.
Utility bill payment was very tedious task and people had to stand outside banks for an extended
period of time. Realizing the need to resolve the issue of long queues for LESCO Bill payments,
Chief Executive Officer decided to explore the Payment channels. LESCO submitted a
comprehensive proposal to resolve this issue to WAPDA Authority headed by the Chairman
WAPDA, Mr. Tariq Hamid, in October 2004. LESCO started printing machine readable bills
from February 2005. The collection system was also deployed, on trial, in a limited number of
bank branches in the beginning of February. The system was formally launched on March 19,
2005. At present 355 branches in LESCO are equipped with this system collecting about 25% of
bills.
Bill Collection at Banks: Data Entry through Barcode Scanning
Bills are paid at designated branches as usual, but with a technical difference. The bills are
scanned by the bank cashier using an average barcode scanner just like a retail store cashier does
for grocery items. With a single scan, all the information encoded in the barcode is instantly
transferred to the software, which is saved with the single click of a button. Provision is also
given for entry of amended bills bearing barcode and bills carrying no barcode. Bank users,
21
without any effort, can generate daily scrolls and collection summary. Monthly collection reports
are also available.
Transfer of Collection Data to the Utility Company
The collection data from banks is transferred to online servers on daily basis using a simple
internet connection. Alternatively, a collection file may be generated and carried on portable
media if no internet connection is available. This data is available for the utility company for
immediate download.
Customer Account on Company Website
The billing and receipt data is uploaded to the online server whenever it experiences any change.
Consumers are able to access true online services at the company website, which include the
following.
Viewing monthly bills.
Printing duplicate bills.
Payment confirmation.
Consumption and Payment History.
Account Status.
Benefits
MRBCS offers a win-win situation for all the three stakeholders.
For LESCO
Reduced time gap between collection and posting to customer account
Instant recovery analysis & timely remittance processing
Easier stub data entry, reporting & reconciliation
Overall reduced cost of collection processing & cash posting
Boost to overall image of the company
Improved customer service
22
For Customers
Much less time for making payments at banks
Ease in obtaining duplicate bills
Can use company website to
o Confirm payment made
o View & print electricity bills
o Retrieve consumption & payment history
o Check account status
For Banks
Much less time required for receiving bills
Data consolidation on a utility company provided system
Effortless scroll and report generation
Reduced cost of bill collection
Machine Readable Bill Collection Trial for All Utilities
Following the instructions of GOP, LESCO has extended MRBCS capability for receiving
PTCL, WASA and SNGPL bills as well in its area of operation. LESCO has also provided its
assistance to these utility companies in printing machine readable bills on a standardized format.
5. Government adjuster processing system.
C: Reporting System
1. Management information system.
2. Line losses system.
3. Special requirements of Chief Executive office and other field offices
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D: Other Systems
1. Payroll system.
2. Inventory Management System
Future Plans
Under the guidance of Chief Executive LESCO, Computer Centre plans to implement modern
technologies for efficient IT support to our field offices, improved customer services and inter
office communication. Following ERP (Enterprise Resource Planning) modules are being
implemented.
1. Financial Accounting and Information system
Financial Control
Transparent Transactions (Db/Cr)
Immediate Monthly Accounts (Month end closing means last day of the month)
Instant financial analysis
Online Cost center (drawing & disbursement offices) wise demand, remittance &
Account Head wise expenditure
Instant payable/receivable analysis
Multi-year accounting
Budget & expenditure comparisons
Bank Collection & Remittance Management (Realization on Company & Accounting
Unit Basis)
Profit & Loss Statement
Fixed Asset Management
Pension/Fund Account Management
Pension Disbursement
Trial Balance
Balance sheet
Classified Balance Sheet
Classified Income Statement
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2. Material Management
It will cover pre-purchase to post disposal and its immediate effect on general ledger. The
moment any file for procurement is moved, it will also be available to Finance Director for
financial vetting.
Inventory Structure (Categories and Items)
Suppliers record & their specialty in Products
Immediate information about the required material on the basis of D.N paid with
reference to new connection, R.C.O etc.
Procurement
o Annual Requirement Plan
o Ordering with Delivery Schedule
o Maximum/Minimum/Re-Order Levels
o Item Purchase Analysis
Inventory Management
o Receipt (Supply, Repair, Transfer)
o Store Allocation (to Field Stores)
o Store Requisition
o Store Issue
o Transfers (Workshop, Regional Store, Field Store, Other Dist. Companies)
o Store Returns specially with reference to M.C.O etc.
o Scrapping
o Material Movement Analysis
o Inventory Tracking & Holding
Disposal
o Disposal Order
o Disposal Issue
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3. Human Resource
All most all HR & Admin: activities from pre-hiring to post retirement have financial impact on
company. These include salary, house acquisition, TA/DA, free supply, medical treatment,
overtime etc. It is strange that we are not aware exactly how many employees do we have &
what expenditure is being incurred.
Recruitment Processing
o Application Management, to save time we can allow candidate to apply any time.
o Candidate Filtering
o Call Letter Issue
o Testing & Interviewing
o Appointment
Career Profiling
o Personnel Data Management
o Performance Review
o Termination
o Promotion
o Change in shift/timings
o Resignation
o Transfer
o Suspension
o Restoration
o Re-appointment
o Disciplinary Cases/Actions
o Audit Paras
26
o Training Courses & Examination
o ACRs, Service Book
HR Analysis
o Sanctioned Strength
o Vacancy Statements
o Seniority List
o Retirement Forecast
Admin:
o Vehicle control
o Complete picture of all vehicles with reference to allocation, description, monthly
expenditure on P.O.L etc.
Payroll
o Disbursement Channel Management
o Pay Scale/Salary Group Management
4. Customer Information and Billing System:
A brief of modules and sub-modules is given below.
a. Customer Services
o Unique Customer ID Assignment, no UT cash even in multiple change of
reference.
o Automatic Bill Adjustment Processing, no complaint for bill correction problems.
o Division and even Subdivision wise Billing (Need not to wait for MR of all
Divisions), more time for Bill payment.
o Corporate Billing
o One Demand Note for Capital Cost & security and payment facility at any bank.
o Bill Distribution through e-mail, direct to customer’s bank, normal channel etc.
27
b. Customer Information System
o Tariff and Customer Classification Management
o Corporate Account Management
o WAPDA Employee Management
o Change of Reference Management
o Infrastructure Rental Management
c. Power Purchase System
d. Power Sale & Billing System
o Billing information to Oracle Receivables for instant Balance Sheet
o Consumer Metering
Consumer Meter Reading, manual, MR entry at Sub Div to avoid
duplication of work & AMR
Metering Adjustments with immediate revise Bill and automatic
adjustment processing.
e. Bill Collection System
o Bank Collection, Remittance & Reconciliation (Various Levels) Management
f. Line Losses System
o Company, Circle, Division, Sub-Division, Grid, Feeder and Transformer Losses
g. Regulatory Reporting for NEPRA
Platform: -
The solution will be based on ORACLE E-Business Suite certified platform and will comprise of
the following;
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OPERATING SYSTEM LINUX
DATABASE ORACLE
APPLICATIONS ORACLE JAVA
ERP and its Benefits:
Enterprise Resource Planning System, or more commonly known as ERP, integrates all the
departments and functions across onto a single computerized system. This is organization
achieved by integrating various software applications that serves the needs of people in Finance,
Billing, Material Management and Human Resources. ERP combines all departments together
into single, integrated software that runs off a single database so that these departments can share
information and communicate with each other. People see the same information and can update
it in a sequential order. When one department finishes with a process, it is automatically routed
via the ERP system to the next department in the sequence. This integrated approach can have a
tremendous payback if companies choose and implement the ERP solution.
General
Automation of major business areas
Improved efficiency and reduced administrative time, effort and cost
Timely information & decision support
Real time business analysis
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Performance evaluation at any instant
Elimination of repetitive activities and duplication of effort
Availability of historic data
Enhanced user interactivity and better utilization of resources
Improved customer services
Cross reference analysis
Disaster recovery arrangements
MIS Reports List
Daily Reports
Sr # CP CO DE CP DESCRIPTIO N
1 CP-16 DISCONNECTION ORDERS / ERO
2 CP-21C METER READING LIST (G)
3 CP-25 CASH RECONCILE LIST /BANK SCROLL. CASH CORRECTION LIST/CASH COMPARE
4 CP-34C METER READING LIST (MDI)
5 CP-52 BILL ADJUSTMENT NOTE
6 CP-53 LIST OF DETECTION BILLS
7 CP-85 ELECTRICITY CONSUMERS BILL (FOR CONNECTION UPTO LOAD 40KW)
8 CP-85 DISCONNECTION NOTICE BILL (FOR CONNECTION UPTO LOAD 40KW)
9 CP-86 ELECTRICITY BILL (FOR CONNECTION ABOVE LOAD 40KW)
10 CP-86 DISCONNECTION NOTICE BILL (FOR CONNECTION ABOVE LOAD 40KW)
11 CP-87 BILLING EXCEPTION LIST
12 CP-88A BILLING ASSESSMENT
13 CP-88L LEDGER
14 CP-89 HEAVY / CREDIT BALANCE LIST
15 CP-90 LIST OF CONSUMERS BILLED ON ESTIMATED READING
16 CP-91-B LIST OF INSENTIVE ON ADVANCE PAYMENT
17 CP-93 WAPDA EMPLOYEE UPDATING FORM
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18 CP-99 FORWARDING MEMO-BANK SCROLLS
19 CP-100 DAILY CASH LIST
20 CP-112 DISCONNECTION LIST
21 CP-112A OUTSTANDING DISCONNECTION ORDERS (TO REMOVE EQUIPMENTS)
22 CP-112N LIST OF CONSUMERS ISSUED DISCONNECTION NOTICES
23 CP-136 MASTER DATA ADDITION / CHANGE FORM (CONNECTION UPTO 40KW)
24 CP-137 MASTER DATA ADDITION / CHANGE FORM (CONNECTION ABOVE 40KW)
25 CP-138 METER DATA CHANGE FORM (1) REPLACEMENT. (2) METER RECONNECTION. (3)
TEMPERARY DISC. (4) PERMANENT DISC.
26 CP-139
UN-IDENTIFIED CASH/DEBTORS ADJUSTMENT. (1) UN-IDENTIFIED CASH POSTING. (2) UN-
IDENTIFIED DELETION. (3) JOURNAL ADJUSTMENT. (4) SECURITY ADJUSTMENT. (5)
SECURITY REPAYMENTS. (6) BAD DEBTS WRITTEN OFF. (7) I.O.T POSTING. (8) REVERSAL
OF I.O.T . (9) INSTALLMENT. (10) WITHDRAWAL OF INSTALLMENT. (11) ADVICE OF DEPT /
COURT ORDER. (12) WITHDRAWAL OF DEPT / COURT ORDER
27 CP-140 STREET LIGHT ADDITION / REMOVAL / REPLACEMENT FORM
28 CP-142 ADVICE OF TRANSFER BETWEEN MDI AND GENERAL BATCHES
29 KVARH < KWH LIST OF THE CONSUMER WHOSE KVARH READING IS LESS THAN KWH
30 GST ENTRY FORMS FOR GENERAL SALE TAX NUMBER
31 LIST OF DOMESTIC CONSUMER WITH HEAVY CONSUMPTION
32 EXTEA HEAVY BILL WITH ALL TARIFF LIST
33 LIST OF WAPDA EMPLOYEE AGAINST WHOM FACILITY WITHDRAWN DUE TO
INVALID/DUPLICATE EPF NUMBER
33 CC DATA CONSUMPTION LIST
34 MASTER DATA LISTING (BEFORE AND AFTER BILLING)
Monthly Reports
Sr # CP CO DE CP DESCRIPTIO N
1 MIS-RPT 1 ANALYSIS OF ARREARS, BILLING AND COLLECTIONS.
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2 MIS-RPT 2 GOVERNMENT DEPARTMENT WISE ANALYSIS OF ARREARS, BILLING AND
COLLECTIONS
3 MIS-RPT 3 CATEGORY WISE ANALYSIS OF BILLING, COLLECTION, ARREARS AND RECEIVEABLES
4 MIS-STAT – 01 A ANALYSIS OF ASSESSMENT, PAYMENT & PYMENT % (ALL CATEGORIES)
5 MIS-STAT – 01 M SUB-DIVISIONAL WISE PERFORMANCE EVALUATION REPORT
6 MIS-STAT – 03 A CATEGORY WISE ANALYSIS OF ASSESSMENT, PAYMENT & PAYMENT %AGE
7 ARR-COMP
COMPARISON OF DEFAULTER
(I)- CIRCLE WISE GOVT. ACTIVE CONSUMERS.
(II)- CIRCLE WISE GOVT. DISCONNECTED CONSUMERS
(III)- CIRCLE WISE PRIVATE ACTIVE CONSUMERS.
(IV)- CIRCLE WISE PRIVATE DISCONNECTED CONSUMERS.
Line Losses Reports
Sr # CP CO DE CP DESCRIPTIO N
8 CP-22A FEEDER WISE LINE LOSSES ANALYSIS
9 CP-22 LINES LOSES BILLING & ARREARS ANALYSIS
10 CP-22MS SUB DIVISION WISE LINE LOSSES ANALYSIS (UNITS IN MILLIONS)
General Reports
Sr # CP CO DE CP DESCRIPTIO N
11 CP-41 RETURN OF CONSUMERS BILLING AND COLLECTION
12 CP-87 A AGE ANALYSIS REPORT OF BILLING EXCEPTIONS
13 CP-90 LIST OF CONSUMERS BILLED ON ESTIMATED READINGS
14 CP-94 UNITS BILLED BY FEEDER.
15 CP-95 BILLING SUMMARY.
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16 CP-109 MONTHLY SURCHARGE SUMMARY BY BATCHES
17 CP-110 BATCH DEBTORS LEDGER (SUMMARY)
18 CP-114 OUTSTANDING EQUIPMENTAL REMOVAL ORDERS
19 DISCOUNTED PERMANENTLY AND TEMPORARY
20 CP-114 A OUTSTANDING EQUIPMENTAL REMOVAL ORDERS FOR A PERIOD MORE THAN 60 DAYS
AS PER CP-114.
21 CP-120A(D) ENERGY DEBTORS RECEIVEABLE ANALYSIS
22 CP-120A(S) ENERGY DEBTORS RECEIVEABLE ANALYSIS
23 GOVT ASSESSMENT AND REALIZATION REPORT FOR GOVT DEPARTMENTS
24 GOVT ASSESSMENT & ARREAR REPORT FOR GOVT DEPARTMENT
25 GST – SDV STATEMENT SHOWING SUB-DIVISION WISE GST ADJUSTED AND COLLECTED.
26 GST – TRF STATEMENT SHOWING TARIFF WISE GST ADJUSTED AND COLLECTED
27 ARR – COMP SUB-DIVISION WISE ARREAR COMPARISON OF DEFAULTERS
28 VAX-PC-STAT (PERFORMANCE DATA)
29 DEDUCTION AT SOURCE OF SCARP TUBE WELLS
30 CONTINUOUSLY LOCKED FOR MORE THAN 6 MONTHS
Cash/Revenue Reports
Sr.# CP CO DE CP DESCRIPTIO N
31 CP-102 A PROOF LIST OF WEEKLY BANK REMITTANCES ADJUSTMENTS
32 CP-103 MONTHLY SCHEDULE OF WEEKLY REMITTANCES BY BANK BRANCHES
33 CP-103 A MONTHLY REMITANCE ADJUSTMENT PROCESSED
34 CP-104 DIVISIONAL CASH COLLECTION BOOK
35 CP-108 DIVISIONAL CASH ANALYSIS SUMMARY
36 CP-128 MONTHLY LIST OF CASH RECEIVED ON BEHALF OF OTHER DIVISIONS
37 CP-130 JOURNAL ADJUSTMENTS POSTED
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38 CP-131 INTER DIVISIONAL JOURNAL ADJUSTMENT CASH
39 CP-132 INTER DIVISIONAL UN-IDENTIFIED ADJUSTMENT
40 CP-135 MONTHLY INTER OFFICE TRANSACTIONS
41 RESIDUAL UNACCOUNTED LIST
Defaulter Reports
Sr.# CP DESCRIPTIO N
42 STATEMENT SHOWING ANALYSIS OF ARREARS AGAINST PERMANANTLYDISCOUNTED PRIVATE
DEFAULTERS
43 STATEMENT OF RECOVERY FROM PRIVATE DEFAULTERS WITH RESPECT TO ARREARS
PERMANENTLYDISCOUNTED CONSUMERS
44 BREAK UP OF RUNNING SLAB DEFAULTERS FROZEN ON PERIOD ENDING PROGRESS AT END OF TIME.
45 STATEMENT OF RECOVERY FROM PRIVATE (OTHER) DEFAULTERS WITH RESPECT TO ARREARS OF PERIOD
ENDING RUNNING
2. Customer Services Directorate
The tasks assigned to Customer Services Directorate in LESCO are:
Implementation of Commercial Policies
Monitoring and management of recovery process
Monitoring of line losses and preparation of accurate line losses statements
Settling consumer disputes involving technical, commercial and tariff issues
Processing and monitoring policies and procedures for Customer Services
Inspection of field formations regarding Commercial and Customer Services
matters
Sanction, contract management and monitoring of specialized electricity
consumptions such as Cable TV networks and neon signs etc
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Processing/sanctioning of various incentives for customers and employees
introduced from time to time
Effective marketing of electricity
Tariff structuring and management of other tariff related matters
Compilation of statistical data and management returns
Co-ordination with Manager MIS for regulating effective billing program
Surveillance and detection of electricity theft
Taking effective measures for prevention of electricity theft
3. Finance Directorate
Major Responsibilities of Finance Director
The Finance Director has overall responsibility of Finance Department. He is Financial Advisor
of the Company. He assists management in Strategic Management decision making. He controls
all financial activities of the Company.
He has additional responsibility of ‘Company Secretary’.
Activities of Finance Directorate
The major sections, responsibilities and activities as per new Organogram given by PEPCO under
Finance Director's control are as under:
Sr.
No. Section Responsibility Activity
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1 Corporate Accounting Manager Corporate
Accounting
Corporate Accounts
Administration
Payroll
2 Corporate Planning &
Control Manager Finance (CP&C)
Corporate Planning & Control
Costing/Pricing
Budgeting
Loan Management
3 Head Quarter Accounts Dy.Manager A/cs (H/Q)
Imprest Banking
Pension & Funds
Audit Observation Reply
Pre-Audit & Payments
4 Field Formation A/cs Dy.Manager A/cs (F.F)
IOT Reconciliation
Receivables/Payables
Fixed Assets Register
Accounts Consolidation &
Financial Reporting
Job Description of Manager Finance-Corporate Planning & Control
1. To receive the budget requirements from different formations of LESCO and consolidate the
budget on the basis of activity level.
2. To prepare and present the budgeted P&L and Balance Sheet to the Finance Director for the
approval of Authority & Board of Directors.
3. Allocation of annual budget on the basis of activity i.e., Area, No of consumers, No of
transformers and No of Vehicles.
4. Monitor the budget with actual results on the basis of variance analysis
5. Close liaison with Financial Module group of WAPDA and prepare the Financial Model of
LESCO on the basis of prehistoric data and different indicators.
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6. Development of monthly management accounts reporting system covering Financia l,
Operational and other efficiency / performance indicators of the company
7. To assist Finance Director in Board of Directors meetings and AGM
8. Any other Job assigned by the Finance Director or Chief Executive.
Job Description of Manager Corporate Accounting
1. To supervise and check the work of B AOs / Section in charge of Payment, Admin,
Consolidation, Banking and Assets through Dy. Manager Accounts Concerned.
2. To assist Finance Director LESCO in day-to-day work.
3. To participate in different meetings for and on behalf of Finance director.
4. To work as adviser to the chief executive-LESCO, in the absence of Finance Director.
5. Any other Job assigned by the Finance Director.
4. Operation Directorate
The basic tasks performed by the operation directorate are:
1. Operation and maintenance of distribution system
2. Operation and maintenance of sub-transmission and grid systems
The Directorate consists of the following departments: -
O&M (T&Gs) Department
The Operation & Maintenance(Transmission and Grid Stations) - O&M(T&Gs) department
headed by a Senior Manager is responsible for the electrical network at 132KV and 66KV and has
under its purview 67 132KV and 15 66KV Grid Stations and 1515 KMs of 132KV and 628 KMs
of 66KV lines. The department carries out its functions in the field through the Superintend ing
Engineer (Grid System Operation) - SE (GSO) by issuing guidelines, schedules and authoriza t ion
37
for the preventive and emergency maintenance programmes, and carries out frequent inspection to
ensure compliance by the field organization.
O&M (Dist) Department
The Operation & Maintenance (Distribution) - O&M (Dist) department headed by a Senior
Manager, is responsible for the electrical system at 11KV and 400V. The system consists of 879
feeders totaling 20914 KMs of 11KV and 13694 KMs of 400V lines and 45706 distribution
transformers. Policy guidelines, schedules and authorization for maintenance of feeders are issued
to the 6 operating circles in the field headed by the Superintending Engineers and frequent
inspections are carried out to ensure compliance. The department also has a civil engineer ing
division headed by an Executive Engineer for the design, construction and maintenance of all the
buildings of LESCO.
Technical Services Department
The Technical Services Department carries out the testing, calibration and repair of all the energy
meters, and also the installation of the maximum demand meters. It is headed by 02 Managers who
have 03 distribution circles each as their areas of responsibility.
PDC Department
The Power Distribution Control Department headed by an Executive Engineer has been set up to
monitor the entire electrical network of LESCO round the clock. Information about the supply
38
breakdowns, major equipment damages and occurrences of importance is received through
telephone and fax from the field and is transmitted to the highest level in LESCO and WAPDA,
and then instructions are passed for situation management.
Safety Department
The Safety Department headed by a Deputy Manager ensures that the system is operated in
compliance with the statutory provisions regarding safety for the employees and the public.
Frequent inspections are carried out and safety parades by the employees are held to ensure that
working practices are safe and the employees are adequately trained in safety measures. Every
accident occurring to an employee, member of public or animal is investigated meticulously and
lessons learnt and disseminated.
In order to update the assets information and to monitor the efficacy of its operation, maintenance
and safety policies and programmers related to the entire LESCO electrical network, the following
returns are prepared and issued.
5. HR & Admin Directorate
Functions of Director (HR & Admin)
General Statement of Function
1. Under direction from the Chairman and Chief Executive Officer of the Company, HR &
Admin Director shall be responsible for the recruitment and placement of the "right
people to the right jobs" and enhancing their levels of motivation / morale / job
satisfaction through:-
39
a) The provision of the necessary support systems and structures such as an attractive
compensation package, a fair and objective system for promotion and career progression,
training and development inputs to keep people in pace with the changing demands of
their jobs, etc.
b) The creation of a working environment and operationalization of administrative
support systems that will promote employee performance and productivity.
Task Elements
More specifically the Human Resources Director shall perform following functions: -
a) A human resource philosophy which shall govern the company’s actions with respect to
human resources management.
b) Prepare a Human Resource Plan to support the short and medium-term goals of the company.
c) Develop the policies, guidelines and procedures for the following human resources
management concerns: -
1. Manpower planning / budgeting.
2. Recruitment and Selection.
3. Appointment, deployment, re-deployment / transfers.
4. Compensation and benefits administration.
5. Career planning and promotions.
6. Performance management.
7. Incentives administration.
8. Training and development.
9. Grant of Move over
10. Grant of permission for higher education.
11. Consider and approve transfer requests.
12. Sanction leave.
13. Disciplinary cases up to BPS 1 to 16.
40
Human Resource Section
Duties / Functions of Manager (HR)
1. Recruitment
a. Manpower planning
b. Recruitment and Selection
c. Appointment and development
d. Creation of posts and offices
2. Promotions
a. Preparation of Seniority lists / Fixation of Seniority
b. Career planning and promotions
c. Performance management
d. Training and development
e. Grant of selection scales
f. Move Over’s
g. Preparation and circulation of seniority lists
h. Maintenance of Service Books
i. Pension Welfare Fund and GLI cases
j. Over time / off-days wages cases
3. Transfer / Posting
a. Transfer and posting of staff and officer
b. Vacancies statement and Manpower data.
c. Incumbency statement / register
d. To maintain list of officer, stay wise.
4. Retirement
a. Retirement and resignation of service
41
b. Preparation of Pension Papers
c. Actively supervise and coordinate the working of all Admin staff posted under LESCO
HQ
d. Establishment matter relating to Technical / non-technical staff
e. Establishment matter of officer regarding training and development.
f. Permission of higher education to all employees under LESCO
g. Permission to employee for another job
5. Miscellaneous
The cases of Wafaqi Mohtasib / Court Cases regarding establishment matters will be dealt by
Legal / Wafaqi Mohtasib Cell of LESCO HQ. However, comments if so required by Legal
Section / Wafaqi Mohtasib Section of this office, the same will be submitted by Manager
(HR&A).
Admin Section
Duties / Functions of Manager (Admin)
1. Accommodation
Allotment of Residential / non-residential accommodation.
Hiring / de-hiring of houses / office buildings.
2. Telephone
Installation of residential / official telephones.
All matter relating to telephone bills, etc.
Maintenance of telephone exchange.
3. Transport
All matter relating to transport.
42
4. Security
Security of Regional office building
5. Audit
Audit / Draft Para’s / Inspection Reports and all matter relating to Audit.
6. Purchase and Procurement
Stationery from local market and WAPDA Stationary Store.
Local purchase of all items through local purchase committee.
7. Compensation and Benefits
Pay and allowances
Advances and Annual Increments
TA / DA
Disbursement of all claims
Grant of all kind of advances
Maintenance of Cash Book
Employees health welfare, safety and security
8. Labor Management
Special Committee of Labor Affairs
9. Miscellaneous
All matter regarding services and benefit not covered here.
10. Disciplinary Cases
Disciplinary Cases and all related correspondence
43
6. Technical Directorate
The tasks assigned to Technical Directorate in LESCO are:
1. Planning and Design of electricity distribution, sub-transmission and grid stations.
2. Procurement of material for these development and system expansion works.
3. Construction of the development and system expansion works.
The directorate comprises of:
a. Planning & Development Department
b. Material Management Department
c. Project Construction Department
a. Planning and Development
Job Description
Processing the applications for New Connections / Reconnections / Load Extensions and
Bulk Supply having load of more than 500 KW (Tariff Categories B – 3, B – 4, C – 2 &
C – 3)
Approval & Design of External Electrification of Housing Schemes
Approval & Design of Electrification of Multistory Buildings/Shopping Plazas
Preparation of Distribution System Rehabilitation and extension and issuance of work
orders there of
Inspection of completed work orders
Load flow studies of distribution network
Technical adjudication of tenders for purchase of material
Maintenance of record/data of 11kv feeders
44
Updating database of 11kv feeders
Load flow studies on Transmission Lines and design/development plans for Transmission
Lines and Grid Stations
Inspection of materials procured for works
Development of standards and specification for materials/components and systems
b. Material Management
Duties/Responsibilities of Manager (Material Management) LESCO
Prequalification and Registration of firms for supply of distribution / GSO Material
Procurement of material through tender
Disposal of unserviceable material / vehicles through tender and auction
Formation of rate contract for regular supply of material with firms
Arrangement of all kinds of material including T&P items from other DISCOs as per
requirement of field formations
Maintaining of minimum and maximum level of material in stores
Issuance of material as per requirements of field formation
c. Project Construction
Main Activities of Construction Circle are:
1- Construction/Bifurcation H.T Feeders
(a) Under ANNUAL DEVELOPMENT PROGRMME
45
(b) Under System Augmentation Programme
2- Rehabilitation of H.T Lines
(a) Under DEVELOPMENT OF POWER (DOP)
(b) Under ENERGY LOSS REDUCTION (ELR)
(c) Under System Augmentation Program
3- Rehabilitation of L.T Lines
(a) Under DEVELOPMENT OF POWER (DOP)
(b) Under ENERGY LOSS REDUCTION (ELR)
(c) Under System Augmentation Program
4- Village Electrification
5- Deposit Works
(a) Private New Connection & Extension of Load
(b) Government Connection
(c) Housing Schemes
(d) Others Works
46
CHAPTER 4
SWOT ANALYSIS OF LESCO
47
SWOT Analysis
The managers and directors are morally responsible to overcome the weakness and convert them
into strength and get ultimate benefits and opportunities from the existing environment.
Strength
LESCO have Experienced professional top management. They have much background
schema skills in their concerned disciplines
Financial reports and other data are readily available on LESCO website. Investor can
easily evaluate the position of LESCO.
LESCO uses up to date technologies, which are not exposed to local competitors.
As LESCO is the only suppler of electricity in Lahore so it has good relation with different
Government and other private sector departments
Due to local employees the turnover rate is low at LESCO
The internal audit system of LESCO is very good which keep the record of data efficient ly.
The LESCO has experienced of strategic apex and managerial skilled staff.
LESCO is backed by federal government.
Weaknesses
Administrative cost of LESO is very high which reduces its profit
System of LESCO is still not up to date, which reduces employee’s efficiency at work
LESCO customer service does not conforms with the requirement.
The LESCO offices is not well furnished. As ambient conditions are necessary for
employee’s to work efficiently.
Media cell of LESCO is not efficiently working
Telecom facilities are not provided to all employee’s.
Opportunities
Large no of customers and resources readily available in the region where they operate.
No competitor in the local market so large so large no of market share.
48
LESCO service buyers are readily available in the market.
Great opportunity to expand the LESCO division in the market.
LESCO’s good relationship in the market, which helps to generate more revenue by
commercial meters
LESCO strategies are strong as compared to their competitors.
LESCO’s Research and development in power generating equipment
Opportunity to construct more dams and generate power more power.
New power generating projects can reduce the per unit cost of electricity.
Threats
Increase no of customer’s day by day and increase in the demand of electricity.
Fluctuations in the supply of electricity is a big threat for LESCO as it raises question
on their efficient working
Threat that government may impose Tax duties on LESCO.
Technological advancement.
Shortening of budget to meet expenses.
Obsolescence in technology of strategic equipment
Due to monopoly of suppliers as Central power purchasing company distributes the
electricity to LESCO so it can charge higher prices which is a threat for LESCO
49
CHAPTER 5
FINANCIAL POSITION AND ANALYSIS OF LESCO
50
Financial Analysis
Need for Financial Analysis
The purpose of financial statements analysis is to make a quick assessment about a firm’s financ ia l
situation. It is also used to identify the major strengths and weaknesses of a business enterprise.
There are different purposes of financial analysis. These analyses basically provide answers about
the entity to lender, investor and financial institution.
The users of statements want to know the sorts of things we can see in the table below: this is not
necessarily everything they will ever need to know, but it is a starting point for us to think about
the different needs and questions of different users.
Investors To help them determine whether they should buy shares in the business,
hold on to the shares they already own or sell the shares they already
own. They also want to assess the ability of the business to pay dividends.
Lenders To determine whether their loans and interest will be paid when due.
Managers Might need segmental and total information to see how they fit into the
overall picture.
Employees Information about the stability and profitability of their employers to
assess the ability of the business to provide remuneration, retirement
benefits and employment opportunities.
Suppliers and other
trade Creditors
Businesses supplying goods and materials to other businesses will read
their accounts to see that they don't have problems: after all, any supplier
wants to know if his customers are going to pay their bills!
51
Customers The continuance of a business, especially when they have a long term
involvement with, or are dependent on the business.
Governments and
their agencies
The allocation of resources and, therefore, the activities of business. To
regulate the activities of business, determine taxation policies and as the
basis for national income and similar statistics
Local community Financial statements may assist the public by providing information
about the trends and recent developments in the prosperity of the business
and the range of its activities as they affect their area.
Financial analysts They need to know, for example, the accounting concepts employed for
inventories, depreciation, bad debts and so on.
Environmental
groups
Many organizations now publish reports specifically aimed at informing
us about how they are working to keep their environment clean.
Researchers Researchers' demands cover a very wide range of lines of enquiry ranging
from detailed statistical analysis of the income statement and balance
sheet data extending over many years to the qualitative analysis of the
wording of the statements.
Tools of Financial Statement Analysis
Financial Ratio Analysis
52
Common Statements analysis (horizontal and vertical analysis)
Cash flow statement
What type of information ratio analysis?
From the financial statement analysis, we can assess that whether the business
1. is profitable
2. has enough money to pay its bills
3. could be paying its employees higher wages
4. is paying its share of tax?
5. is using its assets efficiently?
6. has a gearing problem
7. is a candidate for being bought by another company or investor?
Caution about using Ratio Analysis
1. Ratio with large derivative from the norm only indicates symptoms of a problem.
2. A single ratio does not provide generally sufficient information from which to judge the
overall performance of the firm.
3. The ration being compared should be calculated using financial statements dated at the
same point in time during the year.
4. It is preferable to use audited statements for ratio analysis. if the statements have not been
audited, the data contained in them may not reflect the firm’s true financial condition.
5. The financial data being compared should have been developed in the same way.
Significance of financial analysis
Financial managers review and analyze the firm’s financial statements periodically, both to
uncover developing problems and to assess the firm’s progress towards achieving its goals. These
actions are aimed at preserving and creating value for the firm’s owners.
53
Financial ratios enable financial managers to monitors the plus of the firm and its progress toward
its strategic goals. Although financial ratio and statements rely on accrual concepts they can
provide useful insights into important aspects of risk and return that affects share price, which
management is attempting to maximize.
Consolidated Statement of Financial Position
As on (2014 - 2012)
ASSETS
June 30,
2014 June 30,
2013 June 30,
2012
June 30,
2010 June 30,
2009
M. Rs. M. Rs. M. Rs. M. Rs. M. Rs.
NON-CURRENT ASSETS
TANGIBLE FIXED ASSETS
Operating fixed assets 44,403 42,004 38,783 29,860 26,092
Capital work in progress 3,621 3,401 3,540 2,725 2,645
48,023 45,405 42,323 32,585 28,737
Long term advances 151 74 87 70 75
Long term Deposits and deferred costs 1 1 0 0 0
48,175 45,479 42,410 32,656 28,812
CURRENT ASSETS
54
Stores, spare parts and loose tools 4,071 3,923 4,105 2,886 2,390
Trade Debtors 29,452 24,765 32,912.10 15566 8,113
Loans, advances and other Receivables 79,874 65,809 34328.40942 31307 18958
Cash and bank balances 18,528 12,862 9483.550223 12886 9186
131,926 107,359 80,829 62,644 38,648
Total Assets 180,101 152,838 123,240 95300 67,460
EQUITY & LIABILITIES
June 30,
2014 June 30,
2013 June 30,
2012
(Million in
Rs.) (Million in
Rs.) (Million in
Rs.)
SHARE CAPITAL AND RESERVES
AUTHORISED SHARE CAPITAL
5,000,000,000 ordinary shares of Rupees 10 each 50,000 50,000 50,000
ISSUED, SUBSCRIBED AND PAID UP SHARE
CAPITAL
1,000 Ordinary shares of Rupees 10 each fully paid up in
cash 0.01 0.01 0.01
Deposit for shares 6,738 6,738 6,738
Federal Government Investment 37,969 - -
Accumulated Profit / Loss (10,176) (15,265) (23,501)
34,531 (8,527) (16,763)
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Deferred credit 20,238 18,762 17,427
Sukuk Bonds - - -
Term finance certificates - - -
Long Term Loans 3,244 3,546 3,553
Employees'Retirement obligations 49,063 39,083 29,780
Consumers' SECURITY DEPOSITS 8,027 7,121 6,270
80,571 68,511 57,030
CURRENT LIABILITIES
Creditors, deposits and accrued liabilities 63,900 91,636 82,384
Current Maturity of Term Finance Certificate - - -
Current Maturity of Long Term Loans 996 1,116 486.724
Provision for taxation 102 102 102
64,999 92,854 82,973
Total Equity & Liabilities 180,101 152,838 123,240
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Consolidated Income statement
At year ended (2014-2012)
YEAR ENDING
June 30, 2014 June 30, 2013 June 30, 2012
(Million in Rs.) (Million in Rs.) (Million in Rs.)
REVENUE
Revenue from
Electricity 224,244 192,997 152,653
Amortization of
Deferred income 931 856 751
TOTAL
REVENUE 225,175 193,853 153,404
OPERATING
COST
Cost of Electricity 195,903 163,053 167,897
Other operating
cost excluding depreciation
19,565 16,589 14,080
Depreciation on
operating fixed assets
2,201 1,987 1,790
217,669 181,629 183,767
Operating
Profit/(Loss) 7,506 12,224 (30,363)
57
Add: Other Income 4,612 2,864 3,299
Profit/(Loss)
before interests &
Tax
12,118 15,088 (27,064)
Less: Financial
Charges
Financial Charges 518 593 110
Worker's Profit Participation Fund
580 725 -
Provision for taxation
- - -
1,098 1,317 110
Profit /(Loss) for
the year 11,020 13,771 (27,174)
58
Financial ratio analysis:
1. Current ratio:
Items Year 2014
(M. Rs)
Year 2013 (M.
Rs)
Year 2012 (M.
Rs)
Current Asset 131,926 107,359 80,829
Current Liabilities 64,999 92,854 82,973
Current Ratio 2.02 1.15 0.97
Comment:
The current ration of LESCO is comparatively good as compared to year 2013 and 2012. The
current ratio has been increased, which means that LESCO can cover its short term
obligations efficiently.
2. Total Sales turnover:
Items Year 2014
(M. Rs)
Year 2013
(M. Rs)
Year 2012
(M. Rs)
Revenue 224,244 192,997 152,653
Total asset 180,101 152,838 123,240
Total asset
turnover ratio
1.24 1.26 1.23
Comment:
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The total sales turnover is reduced in year 2014 as compared to year 2013. It shows that the
LESCO is not generating efficient revenue over its total assets.
3. Total asset turnover
Items Year 2014
(M. Rs)
Year 2013
(M. Rs)
Year 2012
(M. Rs)
Net income 11,020 13,771 (27,174)
Total asset 180,101 152,838 123,240
Total asset
turnover ratio
6.11% 9.01% -22.04%
Comment:
The total asset turnover has been decreased in year 2014 which shows that they are not
efficiently using their assets.
4. Earnings per share
Items Year 2014
(M. Rs)
Year 2013
(M. Rs)
Year 2012
(M. Rs)
Net income 11,020 13,771 (27,174)
Number of shares
outstanding
5000
5000
5000
Earnings per share Rs. 2.20 Rs. 2.75 Rs. -5.43
Comment:
60
The earning per share have been increased in year 2013, but again decreased in year 2014. It
shows that the company might have retained the earning or invested the net income to capital
assets.
5. Working Capital
Items Year 2014
(M. Rs)
Year 2013
(M. Rs)
Year 2012
(M. Rs)
Current asset 131,926 107,359 80,829
Current Liabilities 64,999 92,854 82,973
66927 14505 2144
Comment:
The working capital of LESCO has been improved over the time which shows an improvement.
It shows that current assets have been increased over the time.
6. Debt ratio:
Items Year 2014
(M. Rs)
Year 2013
(M. Rs)
Year 2012
(M. Rs)
Total liabilities 145570 161365 140003
Total assets 180,101 152,838 123,240
Debt ratio 0.8082 1.055 1.136
Comment:
The debt ratio of LESCO has been significantly decreased which shows that the company has
increased their Assets and can cover their liabilities through their assets efficiently.
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CHAPTER 6
WORK DONE BY ME
62
Work done:
I have worked in LESCO Headquarter from 24-06-2016 to 21-07-2016. I started my work in
Finance directorate, Where I was allowed to work in banking section only.
Banking section of LESCO:
As clearly stated from the heading “Banking section”, the banking section is involve transactions
between customers, LESCO, Central power purchasing company, and bank as an intermediary.
The banking section is responsible for following tasks:
Reconciliation of bank statements
Managing the accounts in all the banks as well as the main account known as ESCROW
in the Habib bank limited. Transferring of all amount to main account “ESCROW”
Transferring of amount to Central power purchasing company (CPPC)
Maintaining data base related to transactions in Oracle Enterprise resource planning
software
Issuance of funds for routine and non-routine works.
Managing the salaries of employees of the company
Receiving the summaries from the bank and from revenue offices (RO)
First week:
During my first day I was verbally demonstrated by sir Imran about the procedural aspects of
LESCO. He told me about the ESCROW account, Bank reconciliation procedure at LESCO,
form CP 48 and CP 49 that are commercial procedures for making summary and receiving
capital, revenue and miscellaneous accounts from Revenue offices, Central power purchasing
company, Oracle working. I was referred to miss Anila for supervision and as Mentor, for
training me about the Work performed by them. During my first week I worked on their Oracle
software where I did following work:
Entering data to Oracle
posting capital, revenue and Miscellaneous data from Bank statements into Oracle
Checking Monthly amounts and ensuring that the sum of daily amounts collected should
be equal to the total amount as mentioned on the banking statement
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A total of 30 banks comes under the purview to this banking section. During my first week I
entered data of Soneri Bank, Askari bank, Allied bank, Habib bank.
Second week:
During my second week I was told about the bank reconciliation procedure and method for
detecting the errors. The entered amount is then reconcialed with the bank statement, the soft
copy of statements are provided by the banks on end of every month. The data entered is
exported from oracle to Microsoft Excel and then using Predefined formulas and filters the
amount is checked and verified that it is properly entered or not. As the entries are usually of
2000 to 3000 entries to chances of error are there. For a given total amount, the portion in which
error exists is then rechecked and the amount is then correct. I did this work for 5 days where I
was presented with different banks data and my task was to reconcile them. After correction is
made the monthly records are uploaded in the folder that is accessed by different departments by
using oracle suit.
Third week:
My third week was Mr. Ali Butt who was Accounts assistant in Banking section. Mr Butt told
me about the initial process which was the initial steps before the data goes into Audit process
and Banking section process. The process comprises of the following steps:
Submission of data to Microsoft Excel
Stubs entry by RO office
Transfer of data to LESCO headquarter in soft copy format
Second reconciliation of Data with the Data entered in Oracle suit as discussed in second
week work done
Sending the funds to the main account “ESCROW” account that is created in HBL and
efficiently crediting that amount from the Oracle software
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The stubs are first received by collecting bank, that is then send to the concerned Revenue office.
The Revenue officer from the stubs enter the amounts in Excel file that is then send to the
LESCO headquarter. The bank statement and the data entered in oracle is then reconciled to
check accuracy.
Fourth week:
During my fourth week I worked on Capital, revenue and Miscellinious accounts.
Capital account:
When customers ordered for a new connection, they are presented with a demand notice that
should be submitted in bank. Those amounts are considered as capital and a separate head is
maintained to keep record of such transactions. The transactions receipts are received by bank
and then sent to the Revenue office. The revenue office maintains a separate record of that
transactions and present it to the LESCO headquarter.
Revenue account:
When customers pay a bill in bank, a slip on the end of the bill is sent to the Revenue office. The
revenue office then records the transactions on excel. The soft copy of that data is then sent to
the banking section. The amounts are then reconciled from the bank statements.
Releasing the funds for Central
power purchasing company and
efficiently crediting that amount
from the Oracle software
Releasing funds for routine and non-
routine works
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Miscellaneous
The amounts other than revenue and capital e.g. penalties, fines come into purview of this head
“miscellaneous”. A separate head is maintained and the record is then presented to the Banking
section for reconciliation with the bank amounts in bank statements.
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CHAPTER 7
CONCLUSION AND RECOMENDATION
67
PROBLEMS
LESCO did not provided me knowledge to the extent that was actually required for the
completion of my internship report even they have much spare time
There is no proper arrangement for electricity load shedding at LESCO finance directorate.
Generators are not working accordingly, which result in loss of data while posting data in
the system.
Due to non-cooperative behavior of employee’s unfavorable environment is created in the
office
ERP system does not work efficiently. It sometimes stops working.
Centralized decision making
Ineffective observation over employees.
No proper work checking of employees. Reacting in worse conditions or actions resulting
when demanded by top management.
OBSERVATION
The building of the LESCO is not according to the requirement, as there is no
Emergency exit.
Some employees do not work Accordingly and intentionally leave there seats for no
reasons
Smoking in the premises, even though they are aware about the restriction.
Employee doesn’t cooperate with Revenue officers; they must cooperate with RO’s to
create good relationship with them.
No proper dress code of employee in the finance directorate.
List of safety precaution to be displayed in each section, as employees are not aware
about the safety precautions. More over there is no such safety department in LESCO
Headquarter.
Providing misleading information and hiding their presence in the office from Assistant
manager banking.
Using inappropriate language during working and making unethical mocking.
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Late arrival of employees.
SUGGESTIONS/ RECOMMENDATIONS
I have provided the following suggestions to Mr. Muneer (Asst. manager banking) which are as
under:
Management should try creating more understanding between different departments to
increase their productivity.
The top management should give every manager the power to make decisions according to
the situation at any time and in the absence of the top manager.
Training should be given to the employees to enhance their skills at work.
The responsibilities of each employee should be clearly stated
The MIS should be used to make decisions as well apart from making records
There should be decentralization in decision making.
Right person should be hired for the right task.
Employee’s skills should be efficiently utilized.
The management should hire multi skilled workers to get economies of scales.
